North Dakota vs South Dakota Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of North Dakota and South Dakota solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | ND · North Dakota | SD · South Dakota |
|---|---|---|
| Avg Monthly Bill | $115 | $115 |
| Peak Sun Hours / Day | 4.8 | 4.9 ◆ |
| Avg $/Watt Installed | $2.95 | $2.95 |
| State Tax Credit | None | None |
| Net Metering | avoided-cost | avoided-cost |
| SREC Market | No | No |
| Property Tax Exempt | Yes | Yes |
| Sales Tax Exempt | No | No |
| Avg Payback (yrs) | 11.1 | 10.7 ◆ |
| Avg 25-Year Savings | $22,600 | $24,300 ◆ |
State Tax Credit Comparison
North Dakota offers no state income tax credit. South Dakota offers no state income tax credit.
Net Metering Policies
North Dakota: avoided-cost rate net metering active. South Dakota: avoided-cost rate net metering active.
Net metering is often the most economically significant solar policy because it determines how excess production is valued. Retail-rate states (where you receive full retail price for exported energy) have substantially better solar economics than avoided-cost or no-net-metering states.
Average 25-Year Savings
North Dakota: $22,600 over 25 years (avg payback 11.1 yrs). South Dakota: $24,300 over 25 years (avg payback 10.7 yrs).
Verdict: Which State Wins on Solar?
South Dakota delivers stronger lifetime solar economics than North Dakota due to higher solar irradiance.
Note: state averages mask significant within-state variation. Your specific utility, roof orientation, and household electricity profile drive your actual numbers — use the calculator to model your home directly.